Invoice Price

The invoice price represents the dealer’s billed cost from the manufacturer for a new vehicle. It is often considered the “wholesale” price and generally lower than the MSRP.

However, the invoice price is not always the true net cost to the dealer, as automakers often provide incentives, holdbacks, or rebates that reduce the effective cost. Buyers sometimes view the invoice price as a baseline for negotiations, aiming to pay as close to invoice as possible while allowing the dealer a small profit.

Dealers may resist revealing invoice prices, but consumers can often find them through third-party resources such as Edmunds or Kelley Blue Book. While knowing the invoice price can strengthen negotiation power, buyers should also be aware that dealers need to cover overhead and remain profitable.

Ultimately, invoice price is one part of the pricing equation and provides insight into how much room there may be for negotiation beneath MSRP.